Why Are Uniswap, Aave, and Sei Seeing Incredible Buying Activity Today?

Let’s get this out of the way – Donald Trump’s decisive victory over Kamala Harris in the 2024 election is the biggest reason why. cryptocurrencies It is rising even higher today. As of 3:15 PM ET, the entire crypto market is up 11.2%, which is more than a meaningful move. This is an incredible daily move that is rarely seen even in this asset class.

However, as with any market-wide rally, some tokens perform better than others. Uniswap (UNI 23.81%), Aave (AAVE 20.79%)And Sei (SEI 13.58%) It is among today’s leading tokens in terms of daily gains, up 32.3%, 26.9% and 15.3% respectively in the same time period.

There is a very important fundamental reason for this move. Let’s look at what’s driving buying activity in these decentralized exchanges and trading-related cryptocurrencies today.

Crypto trading activity expected to begin

Uniswap is among the largest decentralized exchanges in the world. Aave is a leading decentralized finance protocol that enables borrowing and lending in the world of digital assets. And Sei is a leading layer-1 crypto project specifically designed to enable decentralized exchanges to operate with greater functionality and improved performance.

Therefore, increased capital flows into the crypto world will disproportionately benefit these three projects. The thesis is actually that simple.

As crypto prices rise, investors can expect fees tied to transaction activity to increase. This is because crypto trading volumes in general are highly correlated with price movements; As prices rise, transaction activity tends to increase as the investment herd tries to capitalize on easy-to-catch profits.

Therefore, indications that a pro-crypto Trump presidency could lead to less (or more positive) regulation for this sector and allow for more widespread adoption and trading of various tokens are certainly bullish for projects that make their bread by facilitating transactions or providing infrastructure. to do this. These three projects have a lot to gain from both sustainably rising prices in the crypto world and the increase in transaction activity that is expected to follow. As relative moats grow compared to other crypto projects, investors seem to believe that higher revenues from transaction fees should translate into higher token burn rates and higher valuations, as more investors seek to take a “picking and shoveling” approach to this melt-up.

Can the melting continue?

Today’s incredible performance seen on Uniswap, Aave and Sei is truly extraordinary. Among the top cryptocurrencies, these three projects tend to be some of the most stable tokens on my watchlist. This is a relative situation; As many investors are aware, the crypto industry is extremely volatile. But I wouldn’t be surprised to see some sort of reversal trade take place in the coming days where some investors take the cream and start taking profits. We will see.

For now, investors looking for ways to increase on-chain trading activity have three great options to consider in this space. These are three crypto projects that I think lay the foundation for decentralized trading becoming more mainstream. If investors flock to blockchain-based solutions for trading blockchain projects (which is certainly a logical thesis), this recent momentum could certainly continue. However, this move is significant, so I would expect any selling pressure to materialize in the coming weeks, and my base case is that a “news sell” trade could form once the peak euphoria dies down.